They probably spent all their money on Columbia House CDs. The 65 million Americans that are part of Generation X are struggling to save for retirement.
According to recent findings from Prudential Financial, 35% have less than $10,000 saved in a retirement account, and 18%, or around 12 million people, have no savings whatsoever. Overall, just short of half said they won’t have enough savings to live comfortably once they stop working.
The bleak reality means just short of half are expecting to retire later than anticipated, and 40% told Prudential that they will take up a part-time gig once they retire from their careers.
One in 10 plan on never retiring.
Even though a March report from the U.S. Treasury Department stated that Social Security funds will no longer to be able to pay full benefits starting in 2033, 58% of Gen Xers, whose oldest members will reach retirement age in a decade, will rely on Social Security payments to fund retirement, but are concerned it may run out.
Rising prices and inflation are also wreaking havoc on Generation X’s ability to save. About three out of every four in that age group said the current monetary climate makes it tough to plan beyond day-to-day with their money.
Seven in 10 are concerned about reaching their retirement goals due to inflation.
But there is hope, according to the survey, which was conducted between March 31 to April 6 of this year. Around 86% of Gen Xers will change their lifestyle to bolster the retirement savings. Just short of half are looking for additional sources of income as well.
The survey was a national sample of 2,000 adults ages 43 to 58. The full survey has a margin of error of +/-2 points.
